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Does Access to Finance Reduce Poverty? Evidence from Katsina State Aliero, Haruna Mohammed; Ibrahim, Saifullahi Sani
Mediterranean Journal of Social Sciences Vol. 3 No. 2 (2012): May 2012
Publisher : Richtmann Publishing

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Abstract

Enhancing access to formal financial services especially credit to the rural populace has been identified as a means ofreducing poverty in developing countries. This paper investigates whether access to financial services reduces poverty in Nigeriafocusing specially on rural areas. A cross-sectional primary data was generated using a structured questionnaire administeredon randomly selected respondents from rural areas of Katsina state. The study used multinomial logit model in examining therelationship, and the study found a negative relationship between poverty level and access to financial services. The studyconcludes that promoting access to formal financial services increases the level of income of the rural dwellers and thus aretarding effect on the level of poverty in the rural areas.
Private Sector Creditand Economic Growth Nexus in Nigeria: An Autoregressive Distributed Lag Bound Approach Aliero, Haruna Mohammed; Abdullahi, Yahya Zakari; Adamu, Nasiru
Mediterranean Journal of Social Sciences Vol. 4 No. 1 (2013): January 2013
Publisher : Richtmann Publishing

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Abstract

This paper analyses the relationship between private sector credit and economic growth in Nigeria, using time series data forthe period of thirty-seven (37) years (1974-2010). In analyzing the data the paper used Autoregressive Distributed Lag (ARLD)bound F-test for cointegration. The results indicated that a long run equilibrium relationship exists between private sectorcredit and economic growth, when private sector credit was used as dependent variable. However, causality results indicatethat there is no causal relationship between private sector and economic growth in Nigeria. Therefore the empirical findings ofthis research implied that while “demand following hypothesis” prevailed in the long run relationship between private sectorcredit and economic growth in Nigeria, non-causal impact between private sector and economic growth on the other handindicates the prevalence of the Schumpeterian “independent hypothesis” on the Nigerian economy. Finally, the studyrecommends long-term investment loan to the productive private sector in addition to the need for comprehensive policies andstrong legal framework for easy disbursement and quick recovery of private sector credit.